Exhibit 99.1
| FOR IMMEDIATE RELEASE | CONTACT: | Bob Lougee (800) 611-8488 | ||||
| Thursday, August 1, 2013 | bob.lougee@usamobility.com |
USA Mobility Reports Second Quarter Operating Results;
Board Declares Regular Quarterly Dividend
Wireless Subscriber and Revenue Trends Continue to Improve;
Wireless Healthcare Base Posts Growth;
Software Revenue and Bookings Increase as Backlog Remains Strong
Springfield, VA (August 1, 2013) —USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging,mobile voice and data andunified communications solutions, today announced operating results for the second quarter ended June 30, 2013. In addition, the Company’s Board of Directors declared a regular quarterly dividend of $0.125 per share, payable on September 10, 2013 to stockholders of record on August 19, 2013.
Consolidated revenue for the second quarter was $52.3 million, compared to $53.1 million in the first quarter and $56.0 million in the second quarter of 2012. Revenue from the Company’s Wireless business (USA Mobility Wireless) was $37.8 million in the second quarter, compared to $38.8 million in the first quarter and $42.8 million in the second quarter of 2012. Revenue from the Software business (Amcom Software) was $14.5 million in the second quarter versus $14.4 million in the first quarter and $13.2 million in the second quarter of 2012.
Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $15.7 million, or 30.1 percent of revenue, compared to $18.4 million, or 32.9 percent of revenue, in the second quarter of 2012. Second quarter EBITDA included $14.3 million from Wireless, compared with $14.3 million for the first quarter and $16.8 million for the second quarter of 2012 and $1.4 million from Software, compared with $1.2 million for the first quarter and $1.6 million for the second quarter of 2012.
Net income for the second quarter was $6.8 million, or $0.31 per fully diluted share, compared to $8.4 million, or $0.37 per fully diluted share, in the second quarter of 2012.
Highlights for the second quarter included:
Wireless
| • | The annual rate of revenue erosion improved to an all-time low of 11.7 percent, compared to 12.4 percent in the first quarter and 17.9 percent in the second quarter of 2012, while the quarterly rate of revenue erosion improved to 2.6 percent from 2.9 percent in the first quarter and 3.3 percent in the year-earlier quarter. |
| • | The annual rate of subscriber erosion was 8.7 percent in the second quarter, compared to 11.0 percent in the second quarter of 2012, while the quarterly rate of unit erosion was 2.4 percent versus 2.1 percent in the second quarter of 2012. Net unit losses totaled 35,000 in the second quarter, compared to 34,000 in the second quarter of 2012. Units in service at June 30, 2013 totaled 1,445,000 compared to 1,583,000 a year earlier. |
| • | The Healthcare segment posted a net gain of 479 paging units during the quarter as gross additions exceeded gross disconnects. |
| • | Total ARPU (average revenue per unit) was $8.22 in the second quarter, compared to $8.25 in the first quarter and $8.45 in the second quarter of 2012. |
| • | Second quarter EBITDA margin for Wireless was 38.0 percent, compared to 36.9 percent in the first quarter and 39.2 percent in the year-earlier quarter. |
Software
| • | Bookings for the second quarter increased to $15.6 million from $14.3 million in the first quarter and $15.1 million in the second quarter of 2012. |
| • | The backlog totaled $39.6 million at June 30, 2013, compared to $34.4 million a year earlier. |
| • | Of the $14.5 million in Software revenue for the second quarter, $6.9 million was maintenance revenue and $7.6 million was operations revenue, compared to $6.5 million and $6.7 million, respectively, of the $13.2 million in Software revenue for second quarter of 2012. |
| • | The renewal rate for maintenance in the second quarter was 99.5 percent. |
Total Company
| • | Consolidated operating expenses (excluding depreciation, amortization and accretion) totaled $36.5 million in the second quarter, with $23.4 million for Wireless and $13.1 million for Software, compared to $37.5 million in the second quarter of 2012, with $26.0 million for Wireless and $11.5 million for Software. |
| • | Capital expenses were $2.9 million, the same as the second quarter of 2012. |
| • | Dividends paid to stockholders totaled $4.2 million in the second quarter. |
| • | The Company’s cash balance at June 30, 2013 was $72.0 million. |
| • | The number of full-time equivalent employees at June 30, 2013 totaled 659, including 361 for Wireless and 298 for Software, compared to a total of 686 at June 30, 2012, including 411 for Wireless and 275 for Software. |
Vincent D. Kelly, president and chief executive officer, said: “USA Mobility continued to make excellent progress in the second quarter. Our Wireless and Software businesses continued making progress, integrating management, operations and sales functions designed to better serve our customer’s total communications and solutions needs, while increasing our long-term efficiency profile. Increasingly, we are seeing more demand from our customers to provide both software solutions and wireless capability as part of our overall solutions offerings. Both our wireless and software operations met or exceeded their performance goals in nearly all operating categories as consolidated EBITDA increased and expenses declined from the first quarter. At the same time, we maintained strong operating margins, and generated sufficient cash flow to again return capital to stockholders in the form of cash dividends.”
Kelly added: “On the Wireless side, we once again exceeded expectations for gross additions, revenue, ARPU, and expenses. In addition, the annual rate of revenue erosion reached a record low, the annual rate of subscriber erosion improved from a year ago, and our quarterly direct net unit churn improved to 1.3 percent from 2.0 percent in the second quarter of 2012.”
Kelly said second quarter sales efforts in the Wireless business continued to focus on the core market segments of Healthcare, Government and Large Enterprise. “These core segments represented 92.3 percent of our direct subscriber base and 88.6 percent of our direct paging revenue at the end of the quarter. Healthcare comprised 74.3 percent of our direct subscriber base at June 30th and continued to be our best performing market segment with the highest percentage of direct gross additions (84.9 percent). Moreover,” he noted, “our Healthcare segment posted a small net gain of 479 paging units during the quarter as gross additions exceeded gross disconnects. We are pleased healthcare providers continue to recognize the cost and reliability benefits of paging for their most critical messaging needs.”
Commenting on the Software business, Kelly said: “Second quarter revenue and bookings increased from both the prior and year-earlier quarters while our backlog totaled $39.6 million and remained near a record high. In addition, our Amcom sales team recorded a number of major contracts in such key industries as healthcare, public safety, and government and continued to build a solid pipeline of prospective business.
Customer demand remained strong for such software solutions as call center management, clinical alerting middleware, critical smartphone communications and emergency notification. While sales activity remained strongest in North America, we also continued to add new accounts in the Asia-Pacific region as we continued to aggressively pursue software accounts in key international markets.”
Kelly noted that Amcom’s successful pursuit of international sales resulted in the Company’s inclusion among companies receiving the President’s “E” Award for Exports in May 2013. Presented by the Department of Commerce at a ceremony in Washington, D. C., the “E” Award is the highest recognition a company can receive for contributing to U.S. exports. “We were delighted that Amcom received this well-deserved recognition for its international sales performance,” Kelly said. “While our Software business already enjoys a leading position in the mission-critical communications space in domestic markets, we expect to continue expanding its international reach as part of our ongoing strategy for long-term growth.”
Shawn E. Endsley, chief financial officer, said USA Mobility’s balance sheet continued to benefit from strong quarterly performances by both Wireless and Software businesses. “Improved rates of revenue erosion and subscriber churn, combined with solid operating expense management, helped drive strong EBITDA in our Wireless business,” he noted, “while revenue and bookings in the Software business continued to increase. The net result is a consolidated cash balance of $72 million at June 30th. In addition, we continue to operate as a debt-free company while maintaining approximately $40 million in borrowing capacity through our credit facility.”
Endsley said the Company is maintaining its previously announced financial guidance for 2013, which projects total revenue to range from $195 million to $213 million, operating expenses (excluding depreciation, amortization and accretion) to range from $150 million to $152 million, and capital expenses to range from $8.1 million to $9.7 million.
* * * * * * * * *
USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Friday, August 2, 2013. Dial-in numbers for the call are 719-457-2661 or 888-438-5524. The pass code for the call is 3839277. A replay of the call will be available from 1:00 p.m. ET on August 2 until 1:00 p.m. on Friday, August 16. Replay numbers are 719-457-0820 or 888-203-1112. The pass code for the replay is 3839277.
* * * * * * * * *
About USA Mobility
USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable and affordablewireless communications solutions to thehealthcare,government,large enterprise andemergency response sectors through its wireless subsidiary, USA Mobility Wireless. In addition, through its software subsidiary, Amcom Software, it providesmission critical unified communications solutions nationally and internationally to leading organizations in such industries ashealthcare,hospitality,education,business andgovernment. Amcom connects people to each other and the data they need. Its software solutions includecritical smartphone communications,contact center optimization,emergency management andclinical workflow improvement. As a single-source provider, USA Mobility Wireless focuses on the business-to-business marketplace and supplies wireless connectivity solutions to organizations nationwide. The Company operates the largest one-way paging and advanced two-way paging networks in the United States. USA Mobility Wireless also offers mobile voice and data services throughSprint Nextel andT-Mobile, includingBlackBerry® smartphones and GPS location applications. Its product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. For further information visitwww.usamobility.com andwww.amcomsoftware.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act:Statements contained herein or in prior press releases which are not historical fact, such as statements regarding USA Mobility’s future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause USA Mobility’s actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, declining demand for paging products and services, continued growth of our Software business and demand for our Software products and services, our ability to develop additional software solutions for our customers, the ability to continue to reduce operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, competition from other software providers, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.
Tables to Follow
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)
| For the three months ended June 30, | ||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
| Wireless | Software | Total | Wireless | Software | Total | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Paging service | $ | 36,064 | $ | — | $ | 36,064 | $ | 40,548 | $ | — | $ | 40,548 | ||||||||||||
Cellular | 163 | — | 163 | 286 | — | 286 | ||||||||||||||||||
Software revenue and other (b) | 1,401 | 14,497 | 15,898 | 1,669 | 13,178 | 14,847 | ||||||||||||||||||
Other | 143 | — | 143 | 280 | — | 280 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total revenue | 37,771 | 14,497 | 52,268 | 42,783 | 13,178 | 55,961 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of revenue (b) | 112 | 5,373 | 5,485 | 156 | 5,060 | 5,216 | ||||||||||||||||||
Service, rental and maintenance (b) | 10,538 | 2,284 | 12,822 | 11,464 | 2,428 | 13,892 | ||||||||||||||||||
Selling and marketing | 2,563 | 3,784 | 6,347 | 2,972 | 2,947 | 5,919 | ||||||||||||||||||
General and administrative | 10,201 | 1,684 | 11,885 | 11,426 | 1,068 | 12,494 | ||||||||||||||||||
Severance and restructuring | 2 | — | 2 | 0 | 24 | 24 | ||||||||||||||||||
Depreciation, amortization and accretion | 2,380 | 1,442 | 3,822 | 2,854 | 1,752 | 4,606 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 25,796 | 14,567 | 40,363 | 28,872 | 13,279 | 42,151 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total revenue | 68.3 | % | 100.5 | % | 77.2 | % | 67.5 | % | 100.8 | % | 75.3 | % | ||||||||||||
Operating income (loss) | 11,975 | (70 | ) | 11,905 | 13,911 | (101 | ) | 13,810 | ||||||||||||||||
% of total revenue | 31.7 | % | –0.5 | % | 22.8 | % | 32.5 | % | –0.8 | % | 24.7 | % | ||||||||||||
Interest expense, net | (63 | ) | (1 | ) | (64 | ) | (66 | ) | — | (66 | ) | |||||||||||||
Other (expense) income, net | (82 | ) | 7 | (75 | ) | 439 | (3 | ) | 436 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income tax (expense) benefit | 11,830 | (64 | ) | 11,766 | 14,284 | (104 | ) | 14,180 | ||||||||||||||||
Income tax (expense) benefit | (4,967 | ) | 29 | (4,938 | ) | (5,772 | ) | 39 | (5,733 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | $ | 6,863 | $ | (35 | ) | $ | 6,828 | $ | 8,512 | $ | (65 | ) | $ | 8,447 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Basic net income per common share | $ | 0.32 | $ | 0.38 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Diluted net income per common share | $ | 0.31 | $ | 0.37 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Basic weighted average common shares outstanding | 21,644,281 | 22,130,397 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Diluted weighted average common shares outstanding | 21,827,149 | 22,613,517 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Reconciliation of operating income (loss) to EBITDA (c): | ||||||||||||||||||||||||
Operating income (loss) | $ | 11,975 | $ | (70 | ) | $ | 11,905 | $ | 13,911 | $ | (101 | ) | $ | 13,810 | ||||||||||
Add back: depreciation, amortization and accretion | 2,380 | 1,442 | 3,822 | 2,854 | 1,752 | 4,606 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
EBITDA | $ | 14,355 | $ | 1,372 | $ | 15,727 | $ | 16,765 | $ | 1,651 | $ | 18,416 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total revenue | 38.0 | % | 9.5 | % | 30.1 | % | 39.2 | % | 12.5 | % | 32.9 | % | ||||||||||||
Key statistics: | ||||||||||||||||||||||||
Units in service | 1,445 | — | 1,445 | 1,583 | — | 1,583 | ||||||||||||||||||
Average revenue per unit (ARPU) | $ | 8.22 | $ | — | $ | 8.22 | $ | 8.45 | $ | — | $ | 8.45 | ||||||||||||
Bookings | $ | — | $ | 15,626 | $ | 15,626 | $ | — | $ | 15,085 | $ | 15,085 | ||||||||||||
Backlog | $ | — | $ | 39,576 | $ | 39,576 | $ | — | $ | 34,391 | $ | 34,391 | ||||||||||||
| (a) | Slight variations in totals are due to rounding. |
| (b) | Wireless results reflect eliminations for intercompany revenue and expenses. |
| (c) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)
| For the six months ended June 30, | ||||||||||||||||||||||||
| 2013 | 2012 | |||||||||||||||||||||||
| Wireless | Software | Total | Wireless | Software | Total | |||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Paging service | $ | 73,115 | $ | — | $ | 73,115 | $ | 82,423 | $ | — | $ | 82,423 | ||||||||||||
Cellular | 358 | — | 358 | 563 | — | 563 | ||||||||||||||||||
Software revenue and other (b) | 2,773 | 28,848 | 31,621 | 3,456 | 25,648 | 29,104 | ||||||||||||||||||
Other | 304 | — | 304 | 606 | — | 606 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total revenue | 76,550 | 28,848 | 105,398 | 87,048 | 25,648 | 112,696 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of revenue (b) | 107 | 10,561 | 10,668 | 329 | 9,703 | 10,032 | ||||||||||||||||||
Service, rental and maintenance (b) | 21,367 | 4,487 | 25,854 | 23,498 | 4,697 | 28,195 | ||||||||||||||||||
Selling and marketing | 5,039 | 7,524 | 12,563 | 6,020 | 5,552 | 11,572 | ||||||||||||||||||
General and administrative | 21,382 | 3,655 | 25,037 | 22,934 | 2,729 | 25,663 | ||||||||||||||||||
Severance and restructuring | 2 | — | 2 | 9 | 37 | 46 | ||||||||||||||||||
Depreciation, amortization and accretion | 4,776 | 2,853 | 7,629 | 5,669 | 3,452 | 9,121 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 52,673 | 29,080 | 81,753 | 58,459 | 26,170 | 84,629 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total revenue | 68.8 | % | 100.8 | % | 77.6 | % | 67.2 | % | 102.0 | % | 75.1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating income (loss) | 23,877 | (232 | ) | 23,645 | 28,589 | (522 | ) | 28,067 | ||||||||||||||||
|
|
| �� |
|
|
|
|
|
|
|
| |||||||||||||
% of total revenue | 31.2 | % | –0.8 | % | 22.4 | % | 32.8 | % | –2.0 | % | 24.9 | % | ||||||||||||
Interest expense, net | (127 | ) | (1 | ) | (128 | ) | (254 | ) | — | (254 | ) | |||||||||||||
Other income (expense), net | 7 | (1 | ) | 6 | 393 | (19 | ) | 374 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) before income tax (expense) benefit | 23,757 | (234 | ) | 23,523 | 28,728 | (541 | ) | 28,187 | ||||||||||||||||
Income tax (expense) benefit | (9,864 | ) | 94 | (9,770 | ) | (11,491 | ) | 212 | (11,279 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income (loss) | $ | 13,893 | $ | (140 | ) | $ | 13,753 | $ | 17,237 | $ | (329 | ) | $ | 16,908 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Basic net income per common share | $ | 0.63 | $ | 0.76 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Diluted net income per common share | $ | 0.63 | $ | 0.75 | ||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Basic weighted average common shares outstanding | 21,666,096 | 22,118,470 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Diluted weighted average common shares outstanding | 21,921,742 | 22,601,603 | ||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||
Reconciliation of operating income (loss) to EBITDA (c): | ||||||||||||||||||||||||
Operating income (loss) | $ | 23,877 | $ | (232 | ) | $ | 23,645 | $ | 28,589 | $ | (522 | ) | $ | 28,067 | ||||||||||
Add back: depreciation, amortization and accretion | 4,776 | 2,853 | 7,629 | 5,669 | 3,452 | 9,121 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
EBITDA | $ | 28,653 | $ | 2,621 | $ | 31,274 | $ | 34,258 | $ | 2,930 | $ | 37,188 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total revenue | 37.4 | % | 9.1 | % | 29.7 | % | 39.4 | % | 11.4 | % | 33.0 | % | ||||||||||||
Key statistics: | ||||||||||||||||||||||||
Units in service | 1,445 | — | 1,445 | 1,583 | — | 1,583 | ||||||||||||||||||
Average revenue per unit (ARPU) | $ | 8.24 | $ | — | $ | 8.24 | $ | 8.45 | $ | — | $ | 8.45 | ||||||||||||
Bookings | $ | — | $ | 29,879 | $ | 29,879 | $ | — | $ | 27,502 | $ | 27,502 | ||||||||||||
Backlog | $ | — | $ | 39,576 | $ | 39,576 | $ | — | $ | 34,391 | $ | 34,391 | ||||||||||||
| (a) | Slight variations in totals are due to rounding. |
| (b) | Wireless results reflect eliminations for intercompany revenue and expenses. |
| (c) | EBITDA or earnings before interest, taxes, depreciation, amortization and accretion is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(In thousands)
| 6/30/13 | 12/31/12 | |||||||
| (Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 72,029 | $ | 61,046 | ||||
Accounts receivable, net | 17,935 | 21,580 | ||||||
Prepaid expenses and other | 6,714 | 5,836 | ||||||
Inventory | 2,641 | 3,257 | ||||||
Escrow receivables | — | 275 | ||||||
Deferred income tax assets, net | 4,581 | 3,915 | ||||||
|
|
|
| |||||
Total current assets | 103,900 | 95,909 | ||||||
Property and equipment, net | 21,150 | 20,809 | ||||||
Goodwill | 133,031 | 133,031 | ||||||
Other intangible assets, net | 27,836 | 30,333 | ||||||
Deferred income tax assets, net | 31,838 | 41,239 | ||||||
Other assets | 1,169 | 1,306 | ||||||
|
|
|
| |||||
Total assets | $ | 318,924 | $ | 322,627 | ||||
|
|
|
| |||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 10,530 | $ | 12,659 | ||||
Accrued compensation and benefits | 12,368 | 17,806 | ||||||
Consideration payable | — | 275 | ||||||
Deferred revenue | 26,047 | 29,986 | ||||||
|
|
|
| |||||
Total current liabilities | 48,945 | 60,726 | ||||||
Deferred revenue | 544 | 693 | ||||||
Other long-term liabilities | 9,515 | 9,789 | ||||||
|
|
|
| |||||
Total liabilities | 59,004 | 71,208 | ||||||
|
|
|
| |||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 2 | 2 | ||||||
Additional paid-in capital | 125,500 | 125,212 | ||||||
Retained earnings | 134,418 | 126,205 | ||||||
|
|
|
| |||||
Total stockholders’ equity | 259,920 | 251,419 | ||||||
|
|
|
| |||||
Total liabilities and stockholders’ equity | $ | 318,924 | $ | 322,627 | ||||
|
|
|
| |||||
| (a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(Unaudited and in thousands)
| For the six months ended | ||||||||
| 6/30/13 | 6/30/12 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 13,753 | $ | 16,908 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and accretion | 7,629 | 9,121 | ||||||
Amortization of deferred financing costs | 129 | 129 | ||||||
Deferred income tax expense | 8,849 | 10,728 | ||||||
Amortization of stock based compensation | 1,254 | 442 | ||||||
Provisions for doubtful accounts, service credits and other | 833 | 780 | ||||||
Adjustments of non-cash transaction taxes | (251 | ) | (243 | ) | ||||
Loss/(Gain) on disposals of property and equipment | 167 | (146 | ) | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 2,812 | (876 | ) | |||||
Prepaid expenses and other assets | (367 | ) | 161 | |||||
Accounts payable and accrued liabilities | (7,578 | ) | (3,160 | ) | ||||
Deferred revenue | (4,088 | ) | (85 | ) | ||||
|
|
|
| |||||
Net cash provided by operating activities | 23,142 | 33,759 | ||||||
|
|
|
| |||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (5,268 | ) | (4,439 | ) | ||||
Proceeds from disposals of property and equipment | 9 | 318 | ||||||
Acquisitions, net of cash acquired | — | (3,000 | ) | |||||
|
|
|
| |||||
Net cash used in investing activities | (5,259 | ) | (7,121 | ) | ||||
|
|
|
| |||||
Cash flows from financing activities: | ||||||||
Repayment of debt | — | (28,250 | ) | |||||
Cash dividends to stockholders | (6,900 | ) | (11,075 | ) | ||||
|
|
|
| |||||
Net cash used in financing activities | (6,900 | ) | (39,325 | ) | ||||
|
|
|
| |||||
Net increase / (decrease) in cash and cash equivalents | 10,983 | (12,687 | ) | |||||
Cash and cash equivalents, beginning of period | 61,046 | 53,655 | ||||||
|
|
|
| |||||
Cash and cash equivalents, end of period | $ | 72,029 | $ | 40,968 | ||||
|
|
|
| |||||
Supplemental disclosure: | ||||||||
Interest paid | $ | 6 | $ | 283 | ||||
|
|
|
| |||||
Income taxes paid | $ | 831 | $ | 936 | ||||
|
|
|
| |||||
| (a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (a)
(Unaudited and in thousands except share, per share amounts and ARPU)
| For the three months ended | ||||||||||||||||||||||||
| 6/30/13 | 3/31/13 | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Paging service | $ | 36,064 | $ | 37,051 | $ | 38,081 | $ | 39,235 | $ | 40,548 | $ | 41,875 | ||||||||||||
Cellular | 163 | 195 | 275 | 314 | 286 | 277 | ||||||||||||||||||
Software revenue | 15,898 | 15,723 | 13,381 | 15,321 | 14,847 | 14,257 | ||||||||||||||||||
Other | 143 | 161 | 147 | 246 | 280 | 326 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total revenues | 52,268 | 53,130 | 51,884 | 55,116 | 55,961 | 56,735 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of revenue | 5,485 | 5,183 | 5,709 | 5,105 | 5,216 | 4,816 | ||||||||||||||||||
Service, rental and maintenance | 12,822 | 13,032 | 13,499 | 13,731 | 13,892 | 14,303 | ||||||||||||||||||
Selling and marketing | 6,347 | 6,216 | 6,030 | 6,043 | 5,919 | 5,653 | ||||||||||||||||||
General and administrative | 11,885 | 13,152 | 12,551 | 12,466 | 12,494 | 13,169 | ||||||||||||||||||
Severance and restructuring | 2 | — | 1,712 | — | 24 | 22 | ||||||||||||||||||
Depreciation, amortization and accretion | 3,822 | 3,807 | 4,387 | 4,724 | 4,606 | 4,515 | ||||||||||||||||||
Impairment | — | — | 3,382 | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total operating expenses | 40,363 | 41,390 | 47,270 | 42,069 | 42,151 | 42,478 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total revenues | 77.2 | % | 77.9 | % | 91.1 | % | 76.3 | % | 75.3 | % | 74.9 | % | ||||||||||||
Operating income | 11,905 | 11,740 | 4,614 | 13,047 | 13,810 | 14,257 | ||||||||||||||||||
% of total revenues | 22.8 | % | 22.1 | % | 8.9 | % | 23.7 | % | 24.7 | % | 25.1 | % | ||||||||||||
Interest expense, net | (64 | ) | (64 | ) | (62 | ) | (64 | ) | (66 | ) | (188 | ) | ||||||||||||
Other income (expense), net | (75 | ) | 81 | 289 | 52 | 436 | (62 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income before income tax expense | 11,766 | 11,757 | 4,841 | 13,035 | 14,180 | 14,007 | ||||||||||||||||||
Income tax expense | (4,938 | ) | (4,832 | ) | (2,814 | ) | (4,987 | ) | (5,733 | ) | (5,545 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net income | $ | 6,828 | $ | 6,925 | $ | 2,027 | $ | 8,048 | $ | 8,447 | $ | 8,462 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Basic net income per common share | $ | 0.32 | $ | 0.32 | $ | 0.09 | $ | 0.37 | $ | 0.38 | $ | 0.38 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Diluted net income per common share | $ | 0.31 | $ | 0.32 | $ | 0.09 | $ | 0.36 | $ | 0.37 | $ | 0.37 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Basic weighted average common shares outstanding | 21,644,281 | 21,688,153 | 21,492,792 | 21,973,473 | 22,130,397 | 22,106,543 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Diluted weighted average common shares outstanding | 21,827,149 | 21,904,862 | 21,991,673 | 22,399,934 | 22,613,517 | 22,589,483 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Reconciliation of operating income to EBITDA (b): | ||||||||||||||||||||||||
Operating income | $ | 11,905 | $ | 11,740 | $ | 4,614 | $ | 13,047 | $ | 13,810 | $ | 14,257 | ||||||||||||
Add back: depreciation, amortization, accretion and impairment | 3,822 | 3,807 | 7,769 | 4,724 | 4,606 | 4,515 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
EBITDA | $ | 15,727 | $ | 15,547 | $ | 12,383 | $ | 17,771 | $ | 18,416 | $ | 18,772 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
% of total revenues | 30.1 | % | 29.3 | % | 23.9 | % | 32.2 | % | 32.9 | % | 33.1 | % | ||||||||||||
Key statistics: | ||||||||||||||||||||||||
Units in service | 1,445 | 1,480 | 1,515 | 1,546 | 1,583 | 1,617 | ||||||||||||||||||
Average revenue per unit (ARPU) | $ | 8.22 | $ | 8.25 | $ | 8.29 | $ | 8.36 | $ | 8.45 | $ | 8.50 | ||||||||||||
Bookings | $ | 15,626 | $ | 14,253 | $ | 18,129 | $ | 15,670 | $ | 15,085 | $ | 12,417 | ||||||||||||
Backlog | $ | 39,576 | $ | 40,183 | $ | 40,626 | $ | 36,155 | $ | 34,391 | $ | 32,688 | ||||||||||||
| (a) | Slight variations in totals are due to rounding. |
| (b) | EBITDA or earnings before interest, taxes, depreciation, amortization, accretion and impairment is a non-GAAP measure and is presented for analytical purposes only. |
USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES
SUPPLEMENTAL INFORMATION (a)
(Unaudited and in thousands)
| For the three months ended | ||||||||||||||||||||||||
| 6/30/13 | 3/31/13 | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | |||||||||||||||||||
Cost of revenue | ||||||||||||||||||||||||
Payroll and related | $ | 2,917 | $ | 2,838 | $ | 2,634 | $ | 2,427 | $ | 2,324 | $ | 2,368 | ||||||||||||
Cost of sales | 2,133 | 1,890 | 2,500 | 2,195 | 2,434 | 2,037 | ||||||||||||||||||
Other | 435 | 455 | 575 | 483 | 458 | 411 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total cost of revenue | 5,485 | 5,183 | 5,709 | 5,105 | 5,216 | 4,816 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Service, rental and maintenance | ||||||||||||||||||||||||
Site rent | 4,237 | 4,235 | 4,326 | 4,326 | 4,421 | 4,791 | ||||||||||||||||||
Telecommunications | 1,885 | 1,889 | 2,053 | 2,257 | 2,346 | 2,312 | ||||||||||||||||||
Payroll and related | 5,074 | 5,203 | 5,432 | 5,309 | 5,360 | 5,529 | ||||||||||||||||||
Stock based compensation | 10 | 10 | 7 | 6 | 6 | 6 | ||||||||||||||||||
Other | 1,616 | 1,695 | 1,681 | 1,833 | 1,759 | 1,665 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total service, rental and maintenance | 12,822 | 13,032 | 13,499 | 13,731 | 13,892 | 14,303 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Selling and marketing | ||||||||||||||||||||||||
Payroll and related | 3,672 | 3,594 | 3,519 | 3,504 | 3,544 | 3,559 | ||||||||||||||||||
Commissions | 1,519 | 1,387 | 1,197 | 1,335 | 1,343 | 1,253 | ||||||||||||||||||
Stock based compensation | 17 | 17 | 19 | 19 | 18 | 16 | ||||||||||||||||||
Other | 1,139 | 1,218 | 1,295 | 1,185 | 1,014 | 825 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total selling and marketing | 6,347 | 6,216 | 6,030 | 6,043 | 5,919 | 5,653 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
General and administrative | ||||||||||||||||||||||||
Payroll and related | 5,662 | 6,026 | 6,423 | 5,851 | 5,972 | 6,490 | ||||||||||||||||||
Stock based compensation | 601 | 599 | 296 | 435 | (19 | ) | 415 | |||||||||||||||||
Bad debt | 265 | 275 | 300 | 275 | 270 | 234 | ||||||||||||||||||
Facility rent | 839 | 844 | 889 | 903 | 868 | 806 | ||||||||||||||||||
Telecommunications | 343 | 375 | 379 | 390 | 443 | 412 | ||||||||||||||||||
Outside services | 2,111 | 3,077 | 2,377 | 2,353 | 2,458 | 2,447 | ||||||||||||||||||
Taxes, licenses and permits | 1,166 | 1,233 | 1,312 | 1,249 | 1,426 | 1,501 | ||||||||||||||||||
Other | 898 | 723 | 575 | 1,010 | 1,076 | 864 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total general and administrative | 11,885 | 13,152 | 12,551 | 12,466 | 12,494 | 13,169 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Severance and restructuring | 2 | — | 1,712 | — | 24 | 22 | ||||||||||||||||||
Depreciation, amortization and accretion | 3,822 | 3,807 | 4,387 | 4,724 | 4,606 | 4,515 | ||||||||||||||||||
Impairment | — | — | 3,382 | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Operating expenses | $ | 40,363 | $ | 41,390 | $ | 47,270 | $ | 42,069 | $ | 42,151 | $ | 42,478 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Capital expenditures | $ | 2,927 | $ | 2,341 | $ | 2,854 | $ | 2,696 | $ | 2,888 | $ | 1,551 | ||||||||||||
| (a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
UNITS IN SERVICE ACTIVITY (a)
(Unaudited and in thousands)
| For the three months ended | ||||||||||||||||||||||||
| 6/30/13 | 3/31/13 | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | |||||||||||||||||||
Units in service | ||||||||||||||||||||||||
Beginning units in service | ||||||||||||||||||||||||
Direct one-way | 1,324 | 1,346 | 1,366 | 1,395 | 1,423 | 1,465 | ||||||||||||||||||
Direct two-way | 73 | 75 | 79 | 82 | 85 | 90 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | 1,397 | 1,421 | 1,445 | 1,477 | 1,508 | 1,555 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Indirect one-way | 38 | 48 | 55 | 58 | 60 | 63 | ||||||||||||||||||
Indirect two-way | 45 | 46 | 46 | 48 | 49 | 50 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | 83 | 94 | 101 | 106 | 109 | 113 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total beginning units in service | 1,480 | 1,515 | 1,546 | 1,583 | 1,617 | 1,668 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Gross placements | ||||||||||||||||||||||||
Direct one-way | 49 | 39 | 46 | 45 | 49 | 41 | ||||||||||||||||||
Direct two-way | 5 | 3 | 2 | 3 | 4 | 3 | ||||||||||||||||||
|
| �� |
|
|
|
|
|
|
|
|
|
| ||||||||||||
Total direct | 54 | 42 | 48 | 48 | 53 | 44 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Indirect one-way | 1 | 1 | 2 | 1 | 2 | 1 | ||||||||||||||||||
Indirect two-way | — | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | 1 | 1 | 2 | 1 | 2 | 1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total gross placements | 55 | 43 | 50 | 49 | 55 | 45 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Gross disconnects | ||||||||||||||||||||||||
Direct one-way | (66 | ) | (61 | ) | (66 | ) | (74 | ) | (77 | ) | (83 | ) | ||||||||||||
Direct two-way | (5 | ) | (5 | ) | (6 | ) | (6 | ) | (7 | ) | (8 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | (71 | ) | (66 | ) | (72 | ) | (80 | ) | (84 | ) | (91 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Indirect one-way | (3 | ) | (11 | ) | (9 | ) | (4 | ) | (4 | ) | (4 | ) | ||||||||||||
Indirect two-way | (16 | ) | (1 | ) | — | (2 | ) | (1 | ) | (1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | (19 | ) | (12 | ) | (9 | ) | (6 | ) | (5 | ) | (5 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total gross disconnects | (90 | ) | (78 | ) | (81 | ) | (86 | ) | (89 | ) | (96 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net loss | ||||||||||||||||||||||||
Direct one-way | (17 | ) | (22 | ) | (20 | ) | (29 | ) | (28 | ) | (42 | ) | ||||||||||||
Direct two-way | — | (2 | ) | (4 | ) | (3 | ) | (3 | ) | (5 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | (17 | ) | (24 | ) | (24 | ) | (32 | ) | (31 | ) | (47 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Indirect one-way | (2 | ) | (10 | ) | (7 | ) | (3 | ) | (2 | ) | (3 | ) | ||||||||||||
Indirect two-way | (16 | ) | (1 | ) | — | (2 | ) | (1 | ) | (1 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | (18 | ) | (11 | ) | (7 | ) | (5 | ) | (3 | ) | (4 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total net change | (35 | ) | (35 | ) | (31 | ) | (37 | ) | (34 | ) | (51 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ending units in service | ||||||||||||||||||||||||
Direct one-way | 1,307 | 1,324 | 1,346 | 1,366 | 1,395 | 1,423 | ||||||||||||||||||
Direct two-way | 73 | 73 | 75 | 79 | 82 | 85 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | 1,380 | 1,397 | 1,421 | 1,445 | 1,477 | 1,508 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Indirect one-way | 36 | 38 | 48 | 55 | 58 | 60 | ||||||||||||||||||
Indirect two-way | 29 | 45 | 46 | 46 | 48 | 49 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | 65 | 83 | 94 | 101 | 106 | 109 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total ending units in service | 1,445 | 1,480 | 1,515 | 1,546 | 1,583 | 1,617 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Slight variations in totals are due to rounding. |
USA MOBILITY, INC. (WIRELESS)
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(Unaudited)
| For the three months ended | ||||||||||||||||||||||||
| 6/30/13 | 3/31/13 | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | |||||||||||||||||||
ARPU | ||||||||||||||||||||||||
Direct one-way | $ | 7.67 | $ | 7.73 | $ | 7.78 | $ | 7.84 | $ | 7.89 | $ | 7.91 | ||||||||||||
Direct two-way | 19.95 | 20.41 | 20.52 | 20.55 | 20.88 | 21.08 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | 8.33 | 8.40 | 8.47 | 8.54 | 8.62 | 8.67 | ||||||||||||||||||
Indirect one-way | 8.97 | 8.22 | 7.51 | 7.25 | 7.48 | 7.61 | ||||||||||||||||||
Indirect two-way | 3.89 | 3.76 | 3.87 | 4.08 | 4.19 | 4.33 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | 6.31 | 5.85 | 5.74 | 5.77 | 5.97 | 6.14 | ||||||||||||||||||
Total one-way | 7.71 | 7.74 | 7.77 | 7.82 | 7.88 | 7.90 | ||||||||||||||||||
Total two-way | 14.40 | 13.96 | 14.16 | 14.36 | 14.69 | 15.00 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total paging ARPU | $ | 8.22 | $ | 8.25 | $ | 8.29 | $ | 8.36 | $ | 8.45 | $ | 8.50 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Gross disconnect rate (b) | ||||||||||||||||||||||||
Direct one-way | –5.0 | % | –4.6 | % | –4.8 | % | –5.3 | % | –5.4 | % | –5.7 | % | ||||||||||||
Direct two-way | –6.7 | % | –6.6 | % | –7.8 | % | –7.7 | % | –8.5 | % | –8.3 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | –5.1 | % | –4.7 | % | –5.0 | % | –5.5 | % | –5.6 | % | –5.8 | % | ||||||||||||
Indirect one-way | –7.4 | % | –23.6 | % | –16.1 | % | –7.6 | % | –6.6 | % | –7.0 | % | ||||||||||||
Indirect two-way | –34.0 | % | –1.6 | % | –1.6 | % | –3.1 | % | –1.8 | % | –1.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | –22.3 | % | –12.5 | % | –9.3 | % | –5.5 | % | –4.4 | % | –4.7 | % | ||||||||||||
Total one-way | –5.1 | % | –5.2 | % | –5.3 | % | –5.4 | % | –5.4 | % | –5.8 | % | ||||||||||||
Total two-way | –17.3 | % | –4.7 | % | –5.4 | % | –6.0 | % | –6.0 | % | –5.9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total paging gross disconnect rate | –6.1 | % | –5.2 | % | –5.3 | % | –5.5 | % | –5.5 | % | –5.8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net loss rate (c) | ||||||||||||||||||||||||
Direct one-way | –1.3 | % | –1.7 | % | –1.5 | % | –2.1 | % | –1.9 | % | –2.9 | % | ||||||||||||
Direct two-way | –0.4 | % | –1.9 | % | –4.9 | % | –4.0 | % | –3.9 | % | –4.9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | –1.3 | % | –1.7 | % | –1.7 | % | –2.2 | % | –2.0 | % | –3.0 | % | ||||||||||||
Indirect one-way | –4.7 | % | –21.8 | % | –13.2 | % | –5.6 | % | –4.9 | % | –5.4 | % | ||||||||||||
Indirect two-way | –33.7 | % | –1.3 | % | –1.3 | % | –2.5 | % | –1.2 | % | –0.9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total indirect | –21.0 | % | –11.5 | % | –7.6 | % | –4.2 | % | –3.2 | % | –3.4 | % | ||||||||||||
Total one-way | –1.4 | % | –2.4 | % | –1.9 | % | –2.2 | % | –2.0 | % | –3.0 | % | ||||||||||||
Total two-way | –13.3 | % | –1.6 | % | –3.5 | % | –3.5 | % | –2.9 | % | –3.5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total paging net loss rate | –2.4 | % | –2.3 | % | –2.0 | % | –2.3 | % | –2.1 | % | –3.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Slight variations in totals are due to rounding. |
| (b) | Gross disconnect rate is current period disconnected units divided by prior period ending units in service. |
| (c) | Net loss rate is net current period placements and disconnected units in service divided by prior period ending units in service. |
USA MOBILITY, INC. (WIRELESS)
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
(Unaudited)
| For the three months ended | ||||||||||||||||||||||||
| 6/30/13 | 3/31/13 | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | |||||||||||||||||||
Gross placement rate (b) | ||||||||||||||||||||||||
Healthcare | 4.5 | % | 3.4 | % | 3.9 | % | 3.7 | % | 4.3 | % | 3.3 | % | ||||||||||||
Government | 2.3 | % | 1.6 | % | 1.5 | % | 2.5 | % | 1.8 | % | 1.3 | % | ||||||||||||
Large enterprise | 2.4 | % | 2.1 | % | 2.3 | % | 2.0 | % | 1.9 | % | 2.4 | % | ||||||||||||
Other | 1.5 | % | 1.8 | % | 1.9 | % | 2.1 | % | 2.0 | % | 2.2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | 3.8 | % | 3.0 | % | 3.3 | % | 3.2 | % | 3.5 | % | 2.8 | % | ||||||||||||
Total indirect | 1.4 | % | 1.0 | % | 1.7 | % | 1.3 | % | 1.2 | % | 1.3 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 3.7 | % | 2.9 | % | 3.2 | % | 3.1 | % | 3.4 | % | 2.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Gross disconnect rate (b) | ||||||||||||||||||||||||
Healthcare | –4.4 | % | –3.9 | % | –4.4 | % | –4.5 | % | –4.5 | % | –4.7 | % | ||||||||||||
Government | –7.1 | % | –5.9 | % | –6.7 | % | –6.8 | % | –7.0 | % | –7.7 | % | ||||||||||||
Large enterprise | –6.7 | % | –7.0 | % | –5.7 | % | –7.3 | % | –8.0 | % | –7.7 | % | ||||||||||||
Other | –7.4 | % | –7.3 | % | –7.0 | % | –8.1 | % | –8.7 | % | –9.2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | –5.1 | % | –4.7 | % | –5.0 | % | –5.5 | % | –5.6 | % | –5.8 | % | ||||||||||||
Total indirect | –22.3 | % | –12.5 | % | –9.3 | % | –5.5 | % | –4.4 | % | –4.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | –6.1 | % | –5.2 | % | –5.3 | % | –5.5 | % | –5.5 | % | –5.8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net loss rate (b) | ||||||||||||||||||||||||
Healthcare | 0.0 | % | –0.5 | % | –0.4 | % | –0.9 | % | –0.2 | % | –1.4 | % | ||||||||||||
Government | –4.6 | % | –4.3 | % | –5.2 | % | –4.3 | % | –5.2 | % | –6.4 | % | ||||||||||||
Large enterprise | –4.2 | % | –4.9 | % | –3.4 | % | –5.3 | % | –6.1 | % | –5.3 | % | ||||||||||||
Other | –5.9 | % | –5.5 | % | –5.1 | % | –5.9 | % | –6.8 | % | –7.1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | –1.3 | % | –1.7 | % | –1.7 | % | –2.2 | % | –2.0 | % | –3.0 | % | ||||||||||||
Total indirect | –21.0 | % | –11.5 | % | –7.6 | % | –4.2 | % | –3.2 | % | –3.4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | –2.4 | % | –2.3 | % | –2.0 | % | –2.3 | % | –2.1 | % | –3.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of period units in service % of total (b) | ||||||||||||||||||||||||
Healthcare | 70.9 | % | 68.4 | % | 67.1 | % | 65.9 | % | 64.9 | % | 63.6 | % | ||||||||||||
Government | 9.1 | % | 10.1 | % | 10.3 | % | 10.8 | % | 11.1 | % | 11.5 | % | ||||||||||||
Large enterprise | 8.1 | % | 8.3 | % | 8.5 | % | 8.6 | % | 8.9 | % | 9.3 | % | ||||||||||||
Other | 7.3 | % | 7.6 | % | 7.9 | % | 8.1 | % | 8.4 | % | 8.8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total direct | 95.4 | % | 94.4 | % | 93.8 | % | 93.4 | % | 93.3 | % | 93.2 | % | ||||||||||||
Total indirect | 4.6 | % | 5.6 | % | 6.2 | % | 6.6 | % | 6.7 | % | 6.8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Slight variations in totals are due to rounding. |
| (b) | Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net loss rates. |
USA MOBILITY, INC. (WIRELESS)
SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND
CELLULAR ACTIVATIONS (a)
(Unaudited)
| For the three months ended | ||||||||||||||||||||||||
| 6/30/13 | 3/31/13 | 12/31/12 | 9/30/12 | 6/30/12 | 3/31/12 | |||||||||||||||||||
Account size ending units in service (000’s) | ||||||||||||||||||||||||
1 to 3 units | 47 | 49 | 52 | 55 | 58 | 61 | ||||||||||||||||||
4 to 10 units | 28 | 29 | 31 | 33 | 35 | 37 | ||||||||||||||||||
11 to 50 units | 67 | 71 | 75 | 78 | 82 | 86 | ||||||||||||||||||
51 to 100 units | 45 | 47 | 49 | 50 | 52 | 54 | ||||||||||||||||||
101 to 1,000 units | 305 | 321 | 334 | 343 | 356 | 373 | ||||||||||||||||||
>1,000 units | 888 | 880 | 880 | 886 | 894 | 897 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 1,380 | 1,397 | 1,421 | 1,445 | 1,477 | 1,508 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
End of period units in service % of total direct | ||||||||||||||||||||||||
1 to 3 units | 3.4 | % | 3.5 | % | 3.6 | % | 3.8 | % | 3.9 | % | 4.1 | % | ||||||||||||
4 to 10 units | 2.0 | % | 2.1 | % | 2.2 | % | 2.3 | % | 2.3 | % | 2.3 | % | ||||||||||||
11 to 50 units | 4.8 | % | 5.1 | % | 5.3 | % | 5.4 | % | 5.6 | % | 5.7 | % | ||||||||||||
51 to 100 units | 3.2 | % | 3.4 | % | 3.5 | % | 3.5 | % | 3.5 | % | 3.6 | % | ||||||||||||
101 to 1,000 units | 22.1 | % | 23.0 | % | 23.5 | % | 23.7 | % | 24.1 | % | 24.8 | % | ||||||||||||
>1,000 units | 64.5 | % | 62.9 | % | 61.9 | % | 61.3 | % | 60.6 | % | 59.5 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Account size net loss rate | ||||||||||||||||||||||||
1 to 3 units | –5.1 | % | –4.8 | % | –5.5 | % | –5.3 | % | –5.7 | % | –6.2 | % | ||||||||||||
4 to 10 units | –5.3 | % | –6.0 | % | –5.5 | % | –4.8 | % | –6.2 | % | –6.2 | % | ||||||||||||
11 to 50 units | –6.4 | % | –4.8 | % | –4.6 | % | –4.8 | % | –4.1 | % | –7.1 | % | ||||||||||||
51 to 100 units | –5.3 | % | –4.0 | % | –2.6 | % | –3.9 | % | –2.4 | % | –3.9 | % | ||||||||||||
101 to 1,000 units | –5.0 | % | –3.9 | % | –2.6 | % | –3.8 | % | –4.7 | % | –1.7 | % | ||||||||||||
>1,000 units | 1.1 | % | –0.2 | % | –0.6 | % | –1.0 | % | –0.3 | % | –2.7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | –1.3 | % | –1.7 | % | –1.7 | % | –2.2 | % | –2.0 | % | –3.0 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Account size ARPU | ||||||||||||||||||||||||
1 to 3 units | $ | 15.12 | $ | 15.22 | $ | 15.29 | $ | 15.43 | $ | 15.49 | $ | 15.49 | ||||||||||||
4 to 10 units | 14.29 | 14.33 | 14.39 | 14.42 | 14.40 | 14.45 | ||||||||||||||||||
11 to 50 units | 11.96 | 12.06 | 12.04 | 12.11 | 12.24 | 12.15 | ||||||||||||||||||
51 to 100 units | 10.42 | 10.47 | 10.47 | 10.48 | 10.35 | 10.52 | ||||||||||||||||||
101 to 1,000 units | 8.84 | 8.84 | 8.94 | 8.97 | 9.01 | 9.04 | ||||||||||||||||||
>1,000 units | 7.19 | 7.23 | 7.24 | 7.28 | 7.34 | 7.35 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | $ | 8.33 | $ | 8.40 | $ | 8.47 | $ | 8.54 | $ | 8.62 | $ | 8.67 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Cellular: | ||||||||||||||||||||||||
Number of activations | 799 | 925 | 1,041 | 948 | 1,052 | 1,070 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Revenue from cellular services (000’s) | $ | 163 | $ | 195 | $ | 275 | $ | 314 | $ | 286 | $ | 277 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (a) | Slight variations in totals are due to rounding. |